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Farm Income Expense - Labor Hired

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Farm Income Expense - Labor Hired



Enter the amounts you paid for farm labor. Do not include amounts paid to yourself. Reduce your deduction by the amounts claimed on:

  • Form 5884, Work Opportunity Credit, line 2;
  • Form 5884-A, Credits for Affected Midwestern Disaster Area Employers, line 6;
  • Form 8844, Empowerment Zone and Renewal Community Employment Credit, line 2;
  • Form 8845, Indian Employment Credit, line 4; and
  • Form 8932, Credit for Employer Differential Wage Payments, line 2.

Include the cost of boarding farm labor but not the value of any products they used from the farm. Include only what you paid household help to care for farm laborers.

Also, reduce your deduction by the nonrefundable and refundable portions of the new CARES Act employee retention credit claimed on Form(s) 943 for your farming business employees.

Caution: If you provided taxable fringe benefits to your employees, such as personal use of a car, do not include in farm labor the amounts you depreciated or deducted elsewhere.

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Views: 939 Created on: Jun 15, 2013
Date updated: Dec 02, 2021

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